According to regional reports, El Salvador’s current leadership is developing a stable coin backed by the US dollar. Meanwhile, others believe the idea of stablecoin has been scrapped now that Nayib Bukele’s government has chosen to leverage bitcoin.
Some say the Colón-Dollar is in development, others say the Salvadoran Stablecoin idea has been abandoned
There is a lot of debate going on regarding a report published by the regional newspaper El Faro. The investigation claims that Salvadoran President Nayib Bukele and his regime are considering issuing a stablecoin. The El Faro report refers to videos showing the president’s brothers discussing the stablecoin dubbed ‘Colón-Dollar’.
The El Faro report notes that a spokesperson for the Bukele regime said the stablecoin plans had been scrapped, but “sources familiar” with the matter told El Faro their disagreement. Indeed, it has been said that the Colón-Dollar meetings are continuing and took place after Nayib Bukele passed the new bitcoin offerings law.
“El Faro has a copy of several videos that total more than two hours of virtual meetings, in which different negotiations appear with delegates from at least five technology companies and where the Bukele brothers are protagonists”, journalists Sergio Arauz, Nelson Rauda and Roman Gressier wrote.
“El Faro has also obtained documents in which the action plan proposed by foreign companies to take advantage of the implementation of a new financial system and the new currency is registered,” the report adds.
– El Faro (@_elfaro_) July 17, 2021
In a discussion on Twitter, the owner of the Twitter account linked to the lively Bitcoin Beach community in Playa El Zonte believes the idea of stablecoin has been scrapped. The statement was in response to a person from El Salvador who mentionned the idea of stablecoin reminded them of Venezuela’s petro.
“From what I understood, they were considering going down this path (which would have been very concerning) but instead chose to embrace Bitcoin,” Twitter account @bitcoinbeach said. tweeted. “From what I hear, it’s no longer a consideration. They gave up control and adopted an open protocol instead, ”the account added.
However, another individual at variance with the Bitcoin Beach account and believes the opposite. The person said that “several” of his “Salvadoran correspondents” corroborated the El Faro article, but he could not “guarantee its accuracy”.
Colón-Dollar Could Be Integrated With Chivo, Alleged Meetings With Blockchain Teams
The El Faro source notes that the stablecoin called Colón-Dollar could be introduced by the end of the year. Financial journalist Francoise Coppola thinks she predicted the creation of a Salvadoran stablecoin in a Tweeter she wrote on June 9, 2021.
“I think that’s what he will do. It will not be backed by actual USD, it will be backed by a “USD equivalent” stablecoin, ”Coppola said at the time.
In addition to the people who don’t like the idea that Nayib Bukele’s regime could create a stablecoin, bitcoiners, as well as citizens of El Salvador, challenged Bukele’s recent decision vaccination warrants.
Large numbers of Salvadorans said they were unhappy with Bukele’s vaccination mandates and mentionned the “Salvadoran population does not want” these vaccines against Covid-19. One person tweeted to Bukele and mentionned: “The Bitcoin community is not supporting you in this area.”
In addition, the regional source who claims that the creation of stablecoin is still ongoing noted that the Bukele brothers were in charge of the concept and that the Colón-Dollar would be part of the government’s wallet dubbed “Chivo”.
In addition to the video meetings, the sources also detailed that members of the Bukele regime met with blockchain teams from Whizgrid, Alogrand and Cardano.
What do you think of the fact that El Salvador would have built a stable coin backed by the US dollar? Do you think the concept was scrapped after the country adopted bitcoin? Let us know what you think of this topic in the comments below.
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